is darivative profit is business profit

This query is : Resolved

mahesh heda (Querist)
Follow

07 January 2010 any income from darivative trading in share is considered as business income if memorandom of association include share trading in other business?

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
Follow

07 January 2010 As per Sec. 43(5) of I. Tax Act,1961, It is always a business income irrespective of the clauses of MOA of the company.

mahesh heda

mahesh heda (Querist)
Follow

08 January 2010 as per section 43(5)(d) an eligible transaction in respect of trading in derivatives referred to in clause (ac)of section 2 of securities contract regulation act,1956 carried out in recognized stock exchange .........shall not be deemed to be a speculative transaction.
kindly clarify the above.

Upgrade to CAclubindia Pro. Subscribe Now!